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What Is Nokia Doing with Amazon in the Cloud?

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Supporting migration to AWS

Europe-based (EFA) communications technology vendor Nokia (NOK) recently announced a strategic collaboration with Amazon Web Services (or AWS). AWS is the cloud computing division of the US-based (SPY) e-commerce titan Amazon (AMZN).

This collaboration would cover four main areas—migration to AWS, 5G network use cases, IoT (Internet of Things) applications, and software-defined networking. For example, Nokia would support service providers in their AWS implementation by offering a suite of services ranging from consulting to integration.

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Attracting big-ticket cloud customers

According to Synergy Research Group, Amazon is the world’s leading cloud vendor. Amazon’s collaboration with Nokia could bolster its efforts to attract more big-ticket enterprise cloud customers to its cloud platform.

Cloud computing is shaping up to be a huge industry. According to Gartner, the global public cloud computing market could be worth $383.4 billion by 2020, up from ~$209.2 billion in 2016, as illustrated in the chart above.

Opportunity to tap more service provider budgets

For Nokia, the deal with AWS could yield multiple rewards that could help the company stem the decline of its top line. The arrangement with AWS could increase Nokia’s exposure to the lucrative cloud computing industry.

Additionally, the collaboration could allow Nokia to tap more spending by service providers as they embrace cloud computing technology and modernize their networks. Nokia is already working with wireless carriers such as AT&T (T), Verizon (VZ), and Vodafone (VOD) in their 5G network trials.

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